In some ways doing business on the Internet is like real estate investing: There are different business models that are successful. For example, in real estate there are three different models of involvement:
- The pure investor. This person puts money into a deal, but has no direct involvement in it. They don’t visit the property, they don’t collect the rent. They did their research and made their decision. Now it’s strictly hands- off.
- The flipper. This person buys houses, may or may not fix them up, then resells them for a profit. They don’t collect the rent, they don’t have a long-term involvement. They are in and out quickly.